According to Adhil Shetty, CEO of BankBazaar, this will “ease upfront cash-flow pressure and improve affordability”. While the ₹10 lakh threshold continues for education and medical remittances, it has been removed for overseas tour packages. For example, a family spending ₹15 lakh on a foreign holiday would earlier pay ₹3 lakh (20%) as TCS, which now falls to ₹30,000. Similarly, if the spending was ₹8 lakh, The TCS would have been ₹40,000 (5%) compared to just ₹16,000 now.
Another key change affects property transactions when resident Indian buy from non-resident ones. Resident buyers can now deduct TDS on purchases of immovable property from non-residents using only their PAN-based challan, without needing a separate tax deduction and collection account number (TAN). This relaxation applies to resident individuals and Hindu Undivided Families, who were earlier required to obtain a TAN even for a one-time property transaction.
